Word: chileans
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THERE ARE MANY PEOPLE Arnold Harberger loves in Chile. He married a Chilean. By his count, 100 to 150 of his students are economists there. He consulted for the Central Bank of Chile during Alessandri Frei's rule in the '60s, and for the Pinochet government's electric company in the past two years. His ties with Chile go all the way back to the '50s, when the University of Chicago, his home base, started an exchange program with Catholic University in Santiago. Arnold Harberger sincerely loves Chile...
...personal consequences of the Pinochet government's systematic repression of its opposition have touched even Harberger's life. His wife's brother, who served as Allende's cultural attache, is now a Chilean poet in exile. He publishes a literary magazine out of Los Angeles-- Literatura Chilena en El Exicilio-- and organizes efforts against the Pinochet government there. Harberger says the government branded his brother-in-law's passport with an L, which means that he can never return to his homeland while the Pinochet junta is in power...
...Chile and by praising the Pinochet regime's economic policies, Harberger strengthened the government's reputation with foreign credit institutions and foreign investors, for whom the word of the chairman of the economics department at a very prestigious American university carried great weight. On each trip of Chile, Chilean newspapers--notably EL Mercurio--ran huge spreads on what the American economist said...
Market-oriented policies are not apolitical in underdeveloped countries; they consolidate the power of an elite, creating discontent among the poor. In order to continue the polices, the government must resort to repressive measures. For example, when the Chilean government went full throttle on the "shock treatment" which Harberger's and Milton Friedman advocated on their 1975 visit to Chile, the Christian Democratic Party criticized the approach and called for alternatives that would ease its dire social consequences. In March 1977, the Christian Democratic Party was outlawed...
...reaction of the council, and of a broad spectrum of professors both at Harvard and at other universities, has been one of bafflement. Many feel that Harberger's association with the Chilean military regime, his brand of "Chicago school" economics, and his strictly economic approach to development will damage the HIID's reputation, and set it on a narrow course, which might exclude other disciplines like sociology and anthropology...